The Chinese yuan, also known as the renminbi, is already convertible under the current account - the broadest measure of trade in goods and services. However, the capital account, which covers portfolio investment and borrowing, is still closely managed by Beijing because of worries about abrupt capital flows.
Shenzhen Investment acquires Maanshan project for 1.2b yuan
Shenzhen Investment, the property arm of the municipal government, yesterday acquired a mixed development project in Maanshan, Anhui province, for 1.2 billion yuan.
The deal increases the company's land bank to more than 15 million square metres in terms of gross floor area and raises its attributable land reserves to 11 million square metres.
The developer said the site was southeast of the Maanshan Civic Centre. The 479,857 square metre site could be developed into residential, commercial, and office units with a total gross floor area of 1.1 million square metres.
The developer expects to take four years to develop the site, which could have a plot ratio of 2.3.
Shenzhen Investment said the residential units could fetch up to 4,500 yuan per square metre, while the commercial properties could reach 17,000 yuan per square metre.
Residential prices in the area range between 3,600 and 5,700 yuan per square metre, according to the developer. Commercial properties ranged between 16,000 and 20,000 yuan per square metre.
Shenzhen Investment shares rose 1.09 per cent to HK$7.40 yesterday.
Meanwhile, Regal Hotels International Holdings yesterday paid 213 million yuan for a mixed development site in Chengdu, Sichuan province. The accommodation cost of the site was 425 yuan per square metre.
The 111,868 square metre site in Xindu district in north Chengdu could have a total gross floor area of 500,500 square metres. Construction of the project will start early next year. It is scheduled for completion in phases from late 2009.
The project will comprise a five-star hotel and retail facilities with a total gross floor area of 185,000 square metres and a residential project with a total gross floor area of 315,500 square metres.
Shares of Regal Holdings dropped 1.49 per cent to 66 HK cents yesterday.